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ive contract farming models

FAO's guide says that contract farming arrangements fall into one of five general models:

The centralized model. The sponsor purchases crops from farmers for processing, and

markets the product. Quotas are distributed at the beginning of each growing season and quality

is tightly controlled. Generally associated with tobacco, cotton, sugar cane, bananas, coffee, tea,

cocoa and rubber.

Nucleus estate model. The sponsor owns and manages a plantation, usually close to a

processing plant, and introduces technology and management techniques to farmers (sometimes

called "satellite" growers). Mainly used for tree crops, but has also been applied to dairy

production. Multipartite model. Usually involves statutory bodies and private companies

jointly participating with farmers. Common in China, where government departments, township

committees and foreign companies have jointly entered into contracts with villages and

individual farmers.

Informal model. Individual entrepreneurs or small companies make simple, informal

production contracts with farmers on a seasonal basis, particularly for fresh vegetables andtropical fruits. Supermarkets frequently purchase fresh produce through individual developers.

Intermediary model. Formal subcontracting of crop production to intermediaries is common

in Southeast Asia. In Thailand, large food processing companies purchase crops from individual

"collectors" or farmer committees, who make their own informal arrangements with farmers.

Key Issues: Agriculture to Agri-business

Policy issues: From absolute control and management of agriculture by Government,

today it is being opened to public-private partnerships. Production technology issues: From input/s oriented technology development for

increasing production, today practice based value addition is being promoted. Quality and certification issues: Demands from consumer/s for better quality has forced

Government/s to establish regulatory mechanisms for quality certification.

Logistics and supply chain issues: Modern retail formats requires efficient and dedicated

supply chain management facilities.

Human resource issues: Lack of appropriately trained human resource is today

considered as the biggest constraint in conversion of agriculture to agri-business.

NTRODUCTION

The world is facing a growing gap between food supplies in transitional countries

and the rest of the world. While some countries face surplus food production -

others face famine. The world agricultural system has become a single market andimportant developments are reshaping the competitive field for all players. Some

organisations are working out how and where they fit, while others are left behind.

The Agribusiness, Post Harvesting and Marketing Management training programme

aims to assess the global agricultural system from the perspective of genomics,

governments, farms, supermarkets and consumers.

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One of the biggest problems that transitional countries face is how to market their

hard grown agricultural products, both inland and for export. Professional

agricultural marketing is regarded as one of the ways to overcome seasonal

agricultural surpluses, shortages of food supplies and also as a means of generating

more income. The combination of these aspects in one training programme is

derived from the ever growing need for all small farmers, suppliers to marketingfirms and processing companies to better interact with each other to the mutual

benefit of everyone concerned.

Successful marketing of agricultural products is dependent on the creation of

favourable circumstances as well as the provision of resources and services.

Effective marketing channels have to include infrastructure and facilities such as

storage, handling, transporting, processing, packaging and retailing services.

Successful marketing must also include product location, timing, product, quantity,

quality, prices and all other information required by producers and consumers to

make beneficial decisions.

Investment must also be made in research and development of product variety,

post-harvest and processing, farm mechanisation as well as in food quality control.

Research and development will be discussed extensively in this programme as one

of the most influential components for the business success of each farmer.